Trade union Solidarity today said that it would seem as if the ANC wants to have its cake and eat it too as it wants to instil investor confidence by making changes in the Treasury and by making reassuring noises at Davos while it is advocating expropriation of land without compensation with the same zest. This follows after this party supported the EFF’s motion on this sensitive issue this afternoon.

“This issue should indeed cause disillusion and will bring an end to Ramaphoria. It is clear that although Cyril Ramaphosa may well be president of the country he is first and foremost president of the ANC. If expropriation without compensation is indeed set to continue a substitution of the captain of the Titanic is all that would have been achieved,” Connie Mulder, head of the Solidarity Research Institute said.

According to Mulder, it is a folly to assume that any foreign investor would invest in property here if such property would merely be grabbed by government. “Private ownership rights form the basis of any successful economy. To be able to tackle our major unemployment problem and unlock economic growth, the government should empower the private sector instead of threatening them with expropriation,” Mulder said.

“What is particularly concerning, is that the ANC supported an EFF motion. The EFF is known for advocating nationalisation and wanting to convert South Africa into Venezuela,” Mulder warned.

The EFF motion regarding expropriation without compensation is in line with the ANC’s policy decision in December.
“This motion does not merely affect agricultural land; it affects all private property – it will create a dangerous precedent. Even if qualifying clauses of financial stability and food security are added, it won’t inspire the confidence needed to halt the outflow of capital. The idea that the government should take land in order to conserve it, is de facto communism and will have the same consequences,” Mulder explained.

“Despite promises of economic growth, this motion is a definite blow to investment confidence. After the Cabinet reshuffle, President Ramaphosa indicated that he was serious about the economy but this motion undermines that sentiment,” Mulder concluded.

 

Issued by Solidarity